Bi III III III
Bi III III III
SUBMITTED TO DIBRUGARH UNIVERSITY FOR PARTIAL FULFILLMENT OF B.COM. SPECIALITY COURSE (ACCOUNTING & FINANCE)
NAME OF GUIDE: Dr. PRANJAL PRATIM DUTTA M.COM.,Ph.D Lecturer deptt.of Accountancy Golaghat Commerce College
SUBMITTED BY: Binay Agarwal Roll No.: Registration No.: Date of Submition:
Dr. Pranjal Pratim Dutta, M.Com., Ph.D Asstt.Professor, Deptt.of Accountancy Golaghat Commerce College Golaghat -785621 (Assam)
Ref.No.
Date:
CERTIFICATE OF THE GUIDE This is to certify that Mr. BINAY AGARWAL student of Golaghat Commerce College has successfully completed her project entitled A Study on the Customer Service and Marketing Process of BSNL at Golaghat under my guidance and supervision. He has fulfilled all the requirements of the project work under Dibrugarh University. The project is the result of his own investigation.
DECLARATION
I Mr. BINAY AGARWAL, student of Golaghat Commerce College, do hereby declare that the project report entitled, A Study on the Customer Service and Marketing Process of BSNL at Golaghat, that has been submitted by me as a requirement of B.Com Final year Course given under Dibrugarh University.
I hereby declare that this project report is an outcome of my individual effort and no part of it has been extracted from any other published research or journals, articles or newsletters except those specified in references.
PREFACE
Projects are an indispensable part of any kind of formal education that help us to have a practical exposure as well as better insight of the subject, which we are studying. In professional courses like B.Com, we are basically trained and equipped with strong theoretical knowledge of how business operates and what are the methods and techniques of running a successful business. The program is designed to provide both portfolio of strong functional skills and the ability to apply, adapt and integrate those skills in different management settings. But no course of study is fully completed unless there is first hand on the job practical knowledge of the business and professional way of working. Therefore, to reinforce this strong theoretical base by practical knowledge, the students are assigned certain projects and are asked to prepare a project report. This report is thus prepared for the study project done at Bharat Sanchar Nigam Limited (B.S.N.L). The topic of the project is, A Study on the Customer Service and Marketing Process of BSNL at Golaghat, The organization shall make all possible efforts to have a secure and safe domain. The data/information is very important and most critical to the business requirements; therefore proper measures should be adopted so that the information is well secured and protected.
ACKNOWLEDGEMENT
A project work is a very important of any course as it helps the student to acquire the skill and responsibility of the effective manager. The basic objective of this project is to have a comprehensive analysis on selection of ideas and knowledge of the student. This report is the result of contribution, guidance and corporation received from a number of people, both implicitly and explicitly. This report can never be claimed as on individual effort and no amount of words written will be enough and adequate to knowledge all the people who have offered this help and support for preparing this report.
I acknowledge my deep sense of gratitude and indebtedness to Dr. Padma Lochan Bhuyan Principal of Golaghat Commerce College, for giving me this opportunity to undergo a Project Work and for his precious guidance in selecting the area of the project and the encouragement and his moral support during this period.
I extend my heartfelt gratitude towards Dr. Pradeep Borthakur, Faculty member of Golaghat Commerce College who in the role of institutional guide offered me his valuable guidance and suggestion in carrying out of Project Work.
A sincere thanks to all the employees and staff who have helped me in visiting and familiarizing with the help of people around different sections and departments. They all have devoted their precious time with me by providing the feedback and the required information which helped me to study the system.
BINAY AGARWAL
EXECUTIVE SUMMARY INTRODUCTION: Bharat Sanchar Nigam Limited (known as BSNL, India
Communications Corporation Limited) is a public sector telecommunication company in India. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector units in India.
.PROJECT TITLE
PROJECT AREA
ACADEMIC GUIDE
Dr.PRADEEP BARTHAKUR
DURATION
RESEARCH METHODOLOGY:
Research can be defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting organizing and evaluating data, making deductions and reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulated hypothesis.
The unprofessional attitude of the respondents. They were not very enthusiastic about covering the questions as they felt that, it would be of no use to them. Some respondents overlooked the questions while filling
Contents
INDEX
PAGE NUMBER
CHAPTER 1- INTRODUCTION
BIBLIOGRAPHY ANNNEXURE
CHAPTER -1 INTRODUCTION
INTRODUCTION
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector units in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, and New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 73 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. To look for details and to collect data for my project I worked in B.S.N.L Office to gather full information about the system and working of whole region and found out the facts about various processes adopted by reliance to pay its advisors and the time period taken for this study are 2 months
PROFILE
Bharat Sanchar Nigam Ltd. Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi Hazratganj
BRANCH OFFICES IN LUCKNOW: Sapru marg, Hazratganj,Alambagh,Mahanagar,Kaiserbagh Chairman & Managing Director : Kuldeep Goyal Status: Mini Ratan (a status assigned to reputed public sector companies in India.)
Interesting Facts:
There are 2 million BSNL mobile connections in rural India(a record, no other connection is as famous as BSNL in rural areas) BSNL supplies phone lines to all other network such as Airtel, Vodafone etc. BSNL is the only network which offers broadband connections More than 50% of the international calls coming to India use Reliance network. Largest pan India coverage-over 11000 towns & 3 lakh villages. Indias No. 1 wireless service provider with more than 50 million customers. An incredible speed of 2mbps is only offered by BSNL The only Mobile service available through out the country including Jammu and Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram etc.
BSNL LANDLINE
PHONE PLUS SERVICE NEW TELEPHONE CONNECTION PERMANENT CONNECTION CONCESSION IN RENTALS SHIFT OF TELEPHONE TRANSFER OF TELEPHONE TELEPHONE TARIFF
BSNL MOBILE
POSTPAID PREPAID UNIFIED MESSAGING GPRS/WAP/MMS DEMOs TARIFF SMS & BULK SMS
NETWORK BROADBAND TYPES OF ACCESS WI-FI CO-LOCATION SERVICE BSNL WEB HOSTING INTERNET TARIFF
BSNL BROADBAND
ISDN TARIFF
LEASED LINE
INTELLIGENT NETWORK
FREE PHONE SERVICE PREMIUM RATE SERVICE INDIA TELEPHONE CARD VIRTUAL PRIVATE NETWORK (VPN) VOICE VPN UNIVERSAL NUMBER UNIVERSAL PERSONAL NUMBER TELE VOTING
VIDEO CONFERENCING
AUDIO CONFERENCING
I NET
TELEX/ TELEGRAPH
EPABX
ORGANISATIONAL CHART:
- Audre Lorde We all have some visions of ourselves and our future, and that vision creates consequences. More than any other factor, vision affects the choices we make and the way we spend our time.
Visions drive consequences. Principles drive results. Key is to base vision on principles.
Stephen R Covey.
It is true for individuals as well as organizations. The strongest form of vision / motivation is to base vision on What Legacy we want to leave. And to achieve it we must take a principled centered path. History is full of examples that many organizations have vanished grown and vanished overnight as their path to achieve vision was not based on principled way.
Vision of the organization can only be translated into reality, if it is shared by one and all. The best way to implement is to involve them in formulation. But even if it is conceived by higher management then it has to be explained to each and every individual of the organization, otherwise it may remain as a showpiece.
Marketing vision of the BSNL has to be based on overall mission and vision of the organization. The mission of BSNL is i. To provide world class State-of-art technology telecom services on demand at affordable price. To provide world class telecom infrastructure to develop country's economy.
ii.
i.
In dynamic environment anything permanent is CHANGE. So we must revise and review so that focus is never lost.
Kenneth Hildebrand.
Marketing Objective.
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. delighting the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with.
Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organisation. Successful Marketing focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of business by integrating them with the organisation strategy, people, technology and business processes. At its most basic, Marketing involves customers, organisations and relationships and the combination creates the need for the management.
Marketing is about creating a competitive advantage by being the best at understanding, communicating, and delivering and developing existing customer relationships in addition to creating and keeping new customers. The concept of the product life cycle is giving way to customer life cycle, focusing on developing products that anticipate the future needs of existing customers and creating services that extend the existing customer relationship beyond the mere transaction. The customer life cycle will focus on lengthening the life span of the customer with the organisation rather than the endurance of a particular product. Customers have changing needs as their life styles alter- the development and provision of products and/or services that continuously seek to satisfy those needs is good Marketing. The Marketing will focus greater
attention on how to deliver customer satisfaction and organisation will begin to structure itself around customer segments and not product lines. A good Marketing Strategy will take the business vision and apply it to the customer base.
According to the Dictionary of Marketing Terms, 2nd edition, published by the American Marketing Association, c1995,
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Once marketing is understood, we can define marketing management process as analyzing marketing opportunities, researching and selecting target markets, designing marketing strategies, planning marketing programs, and organizing, implementing, and controlling the marketing efforts.
In simple words it implies a buyer, a seller, bonded by the mutual need, satisfying offer and a medium/process to exchange the offer.
Marketing Process.
We often talk of marketing & Sales and often use it interchangeably without understanding the difference in it. Marketing is everything we do to get and leverage a client relationship. Marketing process is broad and includes all of the following: -
Discovering what product, service or idea customers want. Producing a product with the appropriate features and quality. Pricing the product correctly. Promoting the product; spreading the word about why customers should buy it. Selling and delivering the product into the hands of the customer.
Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service.
Contrasting the Sales Concept with the Marketing Concept:We Sell Confidence.
The concepts surrounding both selling and marketing also differ. There is a need for both selling and marketing approaches in different situations. One approach is not always right and the other always wrong - it depends upon the particular situation.
In a marketing approach, more listening to and eventual accommodation of the target market occurs. Two-way communication (sometimes between a salesperson and a customer) is emphasized in marketing so learning can take place and product offerings can be improved.
A salesperson using the sales concept, on the other hand, sometimes has the ability to individualize components of a sale, but the emphasis is ordinarily upon helping the customer determine if they want the product, or a variation on it, that is already being offered by the company. In the sales approach, not much time is spent learning what the customer's ideal product would be because the salesperson has little say in seeing that their company's product is modified. Furthermore, they aren't rewarded for spending time listening to the customer's desires unless they have a product to match their desires that will result in a sale.
The 7Ps for service marketing (Product, price, place, promotion, physical evidence, people & process) are the means to attain, nurture, & retain the customers and not the end.
Most of the big companies have a Vision & Mission statement so as to guide their all energy, efforts to realize it. BSNL also has a vision To become the largest Telecom Service provider in South East Asia. Firstly we need to understand the parameter for being the largest. Is it revenue, ARPU, profit, subscribers, Network (no of exchanges, BTS etc)? From monopoly to multi operator scenario, BSNLs market share is bound to reduce. But how much down we will let it? There are lot of similarities between British Telecom & us. One must keep watch on market share in monthly growth and take timely action. To improve our share, we need to acquire more than 50% of new acquisitions while maintaining earlier. This is quite challenging in this dynamic environment. Today landline base is reducing across globe, but why? Europe defines an operator with 25% or more market share as Significant market Power (SMP), while they intend to increase it to 40%. BSNL has been the largest operator and we must strive not only to maintain but enhance it. We need to act fast. Timely action is an essence.
What should be our marketing Vision, will it help us in inspiring to achieve higher. Can it be something such as To retain the highest market share, build highest brand equity and maximizing the profits?
Brand Equity.
We may think what is Brand equity? In simple words it is how far people are willing to pay if we increase our prices i.e. premium for our services. We may feel happy to say there is lot of black marketing of our SIM cards. Is it a healthy sign? We reduce prices when competitors launch new schemes. Does it imply poor brand equity? Brand Equity can be built with good equity of quality of services at the affordable price. Continuous innovation in product and delivery of services with the appropriate pricing is the key strategy for developing the trust in customer so that he keeps his loyalty with BSNL. We have to be first mover in our efforts for product and price differentiation. Presently the market is in growth phase and price could be a differentiating factor, but how long? Is any scope left for further cuts? Ultimately it is the
quality, customer care, and timely availability apart from price, which will matter. Quality depends on many parameters such as tangibles (like physical facilities, Appearance of personnel, Tools or equipment used to provide service, Physical appearance of service, Other customers in the service facility), Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, and Communications with customer, Understanding etc. Quality definitely commands premium. Why are people willing to pay more for Raymonds or Adidas or Sony when comparable offers exist in market? One may say that customer perception of quality is not built overnight; it may require a brand and brand building investments apart from a quality product. How many brands do we have? Our investments get diluted with more number of brands. Even Airtel merged the Touchtel brand with more popular one. Cant we have just one brand i.e. BSNL? Have we ever tried to examine our revenue breakup? While majority of the revenue comes from landline (DELs plus PCOs), how many people know of Bfone? CellOne happens to be more popular.
So where should our marketing & sales effort be more? Wholesale, retail or corporate! What means do we need to use to promote our products and in what proportion? Advertising, PR, Franchisees, 24x7 customer care, business development etc. What activities should be taken up by Corporate Office, Circles and SSAs? In advertising there is need to synergize our activities at Corporate, Circle and SSA level. In this regard Corporate office has issued division of work guidelines. There is also a need to have good relation with our advertising agencies and simultaneously their performance need to be monitored for taking quality output from them.
What is USP (Unique Selling Proposition) for BSNL? A Government company which delivers. A government company which gives service better than private could be a deadly combination, which no competitor can copy.
Social Responsibility.
We were the most trusted telecom brand in year 2003 & 2004. We have been given Golden Peacock award for Best Corporate Social responsibility. How can we leverage these distinctions? These achievements need to be highlighted through public relation exercise like press meet. This will help us in building our marketing image. In sales and distribution front though we have over one-lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges why are we not visible like others? Why cant we utilize all possible space? Cant we leverage our
franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why our recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint? Does it imply that our planning for printing, inventory management, logistics, and supply chain and of course franchisee management is inefficient? Do we have targets for these just like DELs & CellOne? Why cant we leverage this huge network for better customer care and improve collection efficiency? We must realize that with waiver of security deposits, no OYT schemes, no advance rentals, adjustment of landline security for CellOne, we dont get fixed deposits to meet our funds requirements. Everything has to be met from Operating revenues. We need to improve collections, realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture in our organization, though we have been providing operation and maintenance on 24X7 basis in the past and we will continue to provide in future too, but what about provisioning customer care and marketing on 24X7 basis?
Business Development.
Business development units have been given the task to develop and nurture long-term relations with corporate houses. Many MoUs have been signed. Bulk bills are being issued. Onepoint payments are being realized for multiple service locations. Key Account Manager concept has been introduced. All this requires change of mindset in addition to the skills of marketing & sales. Do we have skilled manpower? Is our organization setup apt for better results? The staff expense to revenue ratio could be a good indicator. No doubt our revenues are up. Profit has increased. But consider the marketing budget we have in comparison to others. Even with this little budget many circles are unable to utilize it. We need to probe ourselves. Corporate office has permitted delegation of upto 70% of Circle budget to SSAs. Does it mean that our budget planning is wrong? How should we allocate marketing budget and which parameter to weigh?
Per DEL/Mobile Acquisition cost Life time value Competitor spend Growth targets
Let us understand what is the lifetime value of our customers? Paying commission of Rs 100200 to franchisee is not a cost considering the future flow of revenue from the customer. How many of our decisions are based on scientific analysis of the precious customer data we already have such as calling pattern, payment habits, usage profile etc? How many surveys we do, how much customer research we carry out? Net growth in mobile is high but what about churn? Cant we analyze & reduce it? Acquisition cost is usually said to be 5-8 times the retention cost.
It is high time we learn fast, groom ourselves, improve our mindset and act fast. Business perspective is equally important as excellence in Telecom operations, maintenance, and installations & planning. Our core competence should be telecom business acumen and not just traditional expertise developed over the years.
It is usually much easier to sell additional things to existing customers than to add new customer. Let us try to upgrade each customer by RS 20 RS 50 by offering them more add on relevant services.
CUSTOMER SERVICE
Several Steps have been taken at BSNL to augment the quality of customer care to international standards Access round the clock help at following toll free numbers
Data one Broadband '1600-424-1600' PSTN Call Centre '1500' (in select states) Sancharnet Help Desk '1957' Cell One all India Help '9400024365'
All BSNL Customer Service Centres (CSCs) now remain open on all seven days from 8.00 AM to 8.00 PM without any break for all activities. Cheque deposit machines have also been installed in many cities, so that customers can make payments 24X7 at their convenience. Customers can also make payments by cheque/Demand Draft to BSNL franchisees all over the country. With a view to simplify and offer customer friendly services, more than one Bfone connections can be applied on a single application form. Accordingly, a single demand note would be issued to the customer in respect of all the connections applied for. Shifting charges for local as well as all India shifting of fixed telephone (bfone) has been abolished. Pagers being given to outdoor staff in a phased manner for speedy rectification of faults. Majority of the local network is built up on jelly filled and OFC for trouble free service. Internal Distribution Points (DPs) being provided in the customer premises to eliminate the faults arising out of overhead wires. Extensive use of digital loop carrier (DLC)/Wireless in Local Loop (WLL) system for improving reliability of external plant. Remote Line Units (RLUs). Remote subscriber Units (RSUs) being provided extensively to reduce the long lengths of copper cables. Establishing call centres across the nation to provide single window solutions and convenience to customers. Countrywide Network Management & Surveillance System (NMSS) to ensure uninterrupted and efficient flow of telecom traffic. Application Forms for new connections have been made free of charge for all services. Procedure for restoration of telephones disconnected due to non-payment simplified and powers delegated to Secondary Switching Area (SSA) heads. Payment of telephone bills being received on Saturday and Sunday through cheques in City Telecom Offices (CTOs).
More than one Public Call Office(PCO) permitted at the same premises. Various application forms and procedures being simplified for new telephone connections, shifting and third party transfer.
VIGILANCE CELL
BSNL is committed to fight against corruption by helping management in creating transparent, honest and efficient organizational culture through the system improvement, awareness, timely detection and speedy investigation of mal-practices with impartiality and professional competence. BSNL Vigilance is headed by Shri Sat Paul, IRS, and Chief Vigilance Officer. BSNL Vigilance Wing plays an advisory role the various disciplinary authorities in BSNL. It also serves a link between BSNL, Central Vigilance Commission, Central Bureau of Investigation and Ministry IT& Communication. The main functions of the BSNL vigilance are to check and eradicate corruption which also include collecting intelligence about corrupt practices committed or likely to be committed within the BSNL, investigating or causing an investigation to be made into verifiable allegations reported to it, processing investigation reports for further consideration of disciplinary authority concerned; referring the matters to the Central Vigilance Commission for advice wherever necessary, taking steps to prevent practices of misconduct etc. Thus the function can be divided into two parts, namely:i) ii) Preventive Vigilance Punitive Vigilance
CHAPTER-3
ANALYSIS AND INTERPRETATION: Interprets that 32% respondents i.e. are using cell phones, whereas 60% are using landlines and there are 8% who dont even know what service are they using.
100 90 80 70 60 50 40 30 20 10 0
ANALYSIS AND INTERPRETATION: Shows that 95% respondents are in the favour of BSNL service 02% in Reliance, 02% in the favor of Vodafone whereas it is 1% in case of Airtel.
YES NO
79% 21%
80 70 60 50 40 30 20 10 0 YES NO
ANALYSIS AND INTERPRETATION: It shows that 75% have BSNL broadband connection, 8% AIRTEL, whereas 7% possess other network connections.
52%
36%
8%
10% 0%
4%
ANALYSIS AND INTERPRETATION: Shows that 52 % of the respondents came to know about the BSNL Connectivity services through word of mouth, 36 % respondents came to know about the BSNL connectivity services through advertisement whereas 8% and 4% came to know through other means and sales promotion respectively.
YES NO
71% 29%
29% YES NO
71%
ANALYSIS AND INTERPRETATION: Shows that 71% respondents are satisfied with the availing BSNL services whereas 29% are not satisfied.
14%
14% Network Availability Cheap Rate Monthly Schemes 29% Customer Services
43%
ANALYSIS AND INTERPRETATION: Shows that 14% of the respondents feel that network availability is an important factor to be considered for a good BSNL service whereas few stresses more on cheap rates and thus are of reverse opinion. Moreover 43% of respondents feel that monthly schemes should be improved while 14% wants better customer services.
SUMMARY OF FINDINGS There is a significant difference between the preference levels of one connectivity
service from another.
100% of people prefer BSNL connectivity rather than reliance. aircel, airtel and others. Maximum numbers of people are well aware of BSNL connectivity available in town. Satisfaction level of the availing BSNL users is also high in number. They came to know about the BSNL connectivity services through word of mouth,
advertisement, sales promotion etc.
CONCLUSIONS
My study was undertaken as per the requirement of the B.Com. 3rd year course. In order to get a better insight of the topic being undertaken for the study, it is necessary that we at first understand the topic and its importance in the current atmosphere and then find out the relevant outcome based on certain set objectives. The methodology of the study was that the data were collected both from primary and secondary sources. From this study, it clarifies that residents of Golaghat town lay different emphasis on the various BSNL services available and they have their own preferred connection, also they look for various factors for the preferred service. Hence, from this report it is clear that BSNL is the best service provider in Asia. BSNL provides world class State-of-art technology telecom services to its customers on demand at competitive prices world class telecom infrastructure in its area of operation and to contribute to the growth of the country's economy.